Which of the Following Long-Term Bonds Has the Highest Interest

question 109

Multiple Choice

Which of the following long-term bonds has the highest interest rate?

• A) Corporate Baa bonds
• B) Canada bonds
• C) Corporate Aaa bonds
• D) Provincial bonds

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Definitions:

Preferential Treatment

Practices or policies that give favorable tax treatment to certain transactions, investments, or income, often to encourage specific economic activities.

Holding Period

The duration of time an investment is owned or held by an investor, which can affect the tax implications of the investment's gains or losses.

Gift Tax

A federal tax on the transfer of property by gift during the donor's lifetime, intended to prevent tax avoidance through the transfer of wealth.

Long-term Loss

A financial loss realized on the sale or exchange of an asset held for more than one year, affecting capital gains tax calculations.